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Cyprus, Ukraine Agree To Replace Temporary DTA

by Lorys Charalambous, Tax-News.com, Cyprus

14 December 2015


Cyprus and Ukraine have agreed the text of a double tax agreement that will likely replace their existing pact from January 1, 2019.

The deal will newly include a most favored nation (MFN) clause for taxes on interest, dividends, royalties, and capital gains. This clause ensures that Cyprus will be extended equal treatment should Ukraine introduce more favorable terms in double tax agreements with other nations.

The Cypriot Government said the signed Protocol will come into force not earlier than January 1, 2019, when the existing Convention, which entered into force on January 1, 2014, will expire.

TAGS: tax | double tax agreement (DTA) | interest | royalties | offshore | Cyprus | dividends | trade | Ukraine

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